Foreign assets disclosure scheme 2026: Key FAQs on who can apply, what you can declare and how to file

The Central Board of Direct Taxes ( CBDT ) has notified the Foreign Assets of Small Taxpayers Disclosure Scheme (FAST-DS) Rules, 2026, a one-time voluntary disclosure scheme for eligible taxpayers with certain undisclosed foreign assets or income.

CBDT has also issued detailed FAQs to explain the scheme and its rules. Here are the key questions taxpayers may have.

It is a one-time voluntary disclosure scheme that allows eligible taxpayers to declare specified undisclosed foreign assets or income that were not reported in income tax returns .

You can file a declaration from 16 August to 31 December 2026. The valuation date is 31 March 2026, and the asset’s fair market value (FMV) must be calculated as on this date.

FMV is the higher of the asset’s purchase cost or its open-market price on 31 March. If market valuation is not available, the indexed cost of acquisition is treated as the FMV.

You can use the scheme if you were a resident of India in the relevant previous year. Even if you are currently a non-resident or RNOR, you can qualify if you were a resident of India in the year when the undisclosed foreign income was earned, or the foreign asset was acquired.

You can make a declaration for any previous year, subject to the conditions and limits under Section 133.

You have to electronically file Form 1. Multiple assets or income items can be included in the same form. You must upload documents supporting the acquisition of the asset or earning of the income.

A valuation report is also required wherever a valuation is carried out, such as for immovable property, jewellery, artwork, unquoted shares, or other assets.

After electronic verification, the income tax authority will issue Form 2 specifying the amount payable within one month from the end of the month in which the declaration was made.

You have two months from the end of the month in which the order is received to make the payment.

If you cannot pay within this period, a further period of up to two months is available, with simple interest of 1% for every month or part of a month of delay.

The maximum additional period is four months from the end of the month in which the original Form 2 order was passed. If payment is not made within the permitted period, the benefit of the scheme ceases.

After payment, file Form 3 with proof of payment. The authority will issue Form 4 within one month from the end of the month in which Form 3 is received.